I can't agree with the nostalgia statement at all, especially considering that old Nintendo franchises usually pop up in the top 40 lists when released.
I think a great part of what made Nintendo so popular and sold so much was simply because a lack of compelling competition. Sega was the first to really challenge Nintendo, and I think the biggest factor was;
It wasn't marketed as a family system. It was marketed as a home entertainment device for older kids or adults and less like a toy, and Sony continued this trend. One needs to look no further than Top 40 charts for UK. It's the same types of games that continually chart. It's always that same mature gaming demographic that buys the same types of games, with a family game or kids game every once in a while.
Basically what I'm saying that is the majority of UK gaming is the teenage-adult male demographic. I think the UK and US are actually very similar(PAL and NPD are usually match for match with some small differences and places rearranged), but due to its size, the US numbers may seem skewed in the console department.
Handhelds I feel, will always be considered a toy, thus their core demographics which buy will always remain the same.
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